Lodgings tax is a privilege tax on persons, firms, and corporations engaged in the renting or furnishing of rooms, lodgings, or other accommodations to transients for periods of less than 180 days of continuous occupation and applies to all charges for personal property used or furnished in such rooms or lodgings.
For transactions entered into on or after October 1, 2019, the tax shall not apply to marine slips, places or spaces for tent camping, or places or spaces provided for motor homes, travel trailers, self-propelled campers or house cars, truck campers, or similar recreational vehicles commonly known as RVs, which are supplied for a period of 90 continuous days or more in any place.
How do I report lodgings tax if the lodgings transactions were made through a third party platform or facilitator?
If the third party platform or facilitator remits all the state and local lodgings tax for the transactions made through the platform/facilitator, you do not need a state lodgings tax account or a local lodgings tax account.
If you will be making lodgings transactions yourself and are also using a third party platform or facilitator, you must obtain a state and local lodgings tax account to file and pay taxes on the lodgings transactions you made. Note: You should report any third party or facilitator transactions on the state and local lodgings tax return and then deduct those transactions to arrive at the net taxable gross proceeds.
I make all my lodging transaction bookings through a third party platform or facilitator, can ALDOR provide me with a listing of all my transactions?
No. Third party platforms or facilitators do not provide a listing of how much lodgings tax is applied to any individual or specific lodgings address.
Are there any lodgings transactions that are not subject to the lodgings tax?
Section 40-26-1 provides the following exemptions from lodgings tax:
- The tax shall not apply to rooms, lodgings, or accommodations supplied: (i) for a period of 180 continuous days or more in any place; (ii) by camps, conference centers, or similar facilities operated by nonprofit organizations primarily for the benefit of, and in connection with, recreational or educational programs for children, students, or members or guests of other nonprofit organizations during any calendar year; or (iii) by privately operated camps, conference centers, or similar facilities that provide lodging and recreational or educational programs exclusively for the benefit of children, students, or members or guests of nonprofit organizations during any calendar year.
- For purposes of subsection (b): “children” means individuals under age 21; “student” is defined in accordance with 26 U.S.C. §151(c)(4), as in effect from time to time or by any successor law; “nonprofit organization” is an organization exempt from federal income tax under 26 USC §501(c)(3), as in effect from time to time or any successor law; and “privately operated” refers to any camp, conference center, or similar facility other than those operated by a nonprofit organization as herein defined.
- For transactions entered into on or after October 1, 2019, the tax shall not apply to marine slips, places or spaces for tent camping, or places or spaces provided for motor homes, travel trailers, self-propelled campers or house cars, truck campers, or similar recreational vehicles commonly known as RVs, which are supplied for a period of 90 continuous days or more in any place.
- Charges made for the rental of a ballroom, dining room, club room, sample room, conference room, wedding chapel, or similar room or space that is not intended nor suitable for overnight sleeping purposes and that is not used for overnight sleeping purposes is not subject to the tax levied pursuant to this chapter if the charges for the rental are separately stated by the facility and the room or space is used exclusively as a room or space for a meeting, conference, seminar, club meeting, private party, or similar activity.
Local Lodgings Tax
Local lodgings tax is levied in the same manner as the state lodgings tax, although these rates vary. ALDOR does not administer all county or city lodgings taxes. Therefore, be advised to contact all counties and municipalities in which you do business in order to determine if you should register with them to collect their local lodgings tax. The same filing status and due date applicable to the state lodgings tax is also applicable to local lodgings tax. The discount for local lodgings tax is the same as for state lodgings tax; however, non-state administered local taxes that may be filed through MAT/ONE SPOT may have a different discount rate and MAT has been programmed accordingly.
Filing Frequencies and Due Date
Lodgings tax returns and remittances are due on or before the 20th day of the month for the previous month’s rentals. However, you may request quarterly filing status if you have a tax liability of less than $2,400 for the preceding calendar year.
You may request biannual filing if you have a tax liability of less than $1,200 for the preceding calendar year. You may also request biannual filing if you make rentals during no more than two 30-consecutive-day periods during the preceding calendar year.
You may request annual filing status if the tax liability for the entire preceding calendar year is less than $600. You may also request annual filing if you make rentals during no more than one 30-consecutive-day period during the preceding calendar year.
Changes to the filing status can only be requested each year before February 20 to file quarterly, biannually or annually for that calendar year.
Discounts apply for timely filing. Note: If paying electronically, the EFT payment information must be transmitted by 4:00 p.m. (central time) on or before the due date, to be considered timely paid.